I can't answer the question about the all of the RRIF in GIC but in terms of having a brokerage account for your RRIF, I had spoken with TD Direct Investing regarding this (not sure if it is the same for other direct investing companies) but I was informed that on January 1, the minimum amount that needs to be withdrawn will be specified for the account and you have a certain amount of time to cash in whatever stocks/mutual funds before the scheduled date of withdrawal.taeyang987 wrote: ↑ If you have All GIC in a RRIF, which account does the automatic withdraw come from the one with the lowest interest rate and will that stop the GIC interest given? Or If your RRIF is all in stocks/mutual funds does it automatically sell your stocks/mutual funds?
BMO IL Discount Brokerage expects you to have the cash available in your account on the day you chose to have the yearly amount distributed to you.taeyang987 wrote: ↑ If you have All GIC in a RRIF, which account does the automatic withdraw come from the one with the lowest interest rate and will that stop the GIC interest given? Or If your RRIF is all in stocks/mutual funds does it automatically sell your stocks/mutual funds?
TDDI automatically takes the RRIF minimum yearly withdrawal from your account on Dec. 15 if you have not done it already. They don't notify you. I don't know what they do if you don't have sufficient cash in the account.lmcjipo wrote: ↑ I can't answer the question about the all of the RRIF in GIC but in terms of having a brokerage account for your RRIF, I had spoken with TD Direct Investing regarding this (not sure if it is the same for other direct investing companies) but I was informed that on January 1, the minimum amount that needs to be withdrawn will be specified for the account and you have a certain amount of time to cash in whatever stocks/mutual funds before the scheduled date of withdrawal.
I don't think FI's will do an automatic sale and withdrawal unless there are very specific provisions in your account agreement. If you have a self-managed account you are expected to have cash on hand and specify your own withdrawals.taeyang987 wrote: ↑ If you have All GIC in a RRIF, which account does the automatic withdraw come from the one with the lowest interest rate and will that stop the GIC interest given? Or If your RRIF is all in stocks/mutual funds does it automatically sell your stocks/mutual funds?
This is exactly the answer I was looking for. Thank you Very much!RCML27 wrote: ↑ For a regular bank BMO RRIF account (not a self directed investing RRIF account), the bank will automatically take the appropriate amount (the minimum amount in our case, or, I think, whatever amount you told the bank you want to take out of your RRIF for the following year) out of your unmatured RRIF GIC. The remaining balance will still earn the original interest rate. However, you won't be able to withdraw random amounts out of an unmatured RRIF GIC (for example, if you wanted to take out an extra $5,000 because you just want to).
It also works the same way with our RBC bank RRIF GICs.
As for whether they take the money out of the lowest interest rate RRIF GIC first, I haven't paid attention to that. I did pose that question to them in the past, and they said they would take it from the lowest rate first.
Yes, that's how it works for the ones we have with BMO and RBC. You should still call the bank to see what they say, but I find sometimes you end up knowing more than the bank employee.taeyang987 wrote: ↑ This is exactly the answer I was looking for. Thank you Very much!
Just double checking so for example I have $5,000 in my GIC and it automatically takes out $2,000. The remaining $3,000 will still earn interest until the RRIF GIC matures correct while the $2,000 that was taken out earned interest while it was still in the RRIF GIC before it got taken out?
